Note 18. Segment and Geographical Information

9 Months Ended

Nov. 02, 2013

Segment Reporting [Abstract]

Segment Reporting Disclosure [Text Block]

18.           Segment and geographical information

Operating segments are defined as components of an enterprise for which separate financial information is available and evaluated regularly by the chief operating decision-maker in deciding how to allocate resources and in assessing performance.  We are organized as, and operate in, one reportable segment.  Our operating segment consists of our geographically based entities in the United States, Israel and Singapore.  Our chief operating decision-maker reviews consolidated financial information, accompanied by information about revenue by product group, target market and geographic region.  We do not assess the performance of our geographic regions on other measures of income or expense or net loss.

We sell our products into four primary target markets, which are the DTV market, home networking market, set-top box market, and home control market. We also have license revenue, included in the license and other market, which we receive from the license of our technology to third parties. Starting with the first quarter of fiscal 2014, we have defined the DTV market to include all products that are sold into digital televisions as well as other adjacent markets using chipset products that are designed for video post-processing and have eliminated the prosumer and industrial audio/video market as a separate revenue segment as the majority of demand accruing from these sales will be represented in the DTV market segment. Also starting with the first quarter of fiscal 2014, we have defined the set-top box market to include all set-top box products delivering IP streaming video, including hybrid versions of these products, and we have eliminated the connected media player market as a separate revenue market as the majority of demand accruing from these sales will be represented in the set-top box market segment.

The following table sets forth net revenue attributable to each target market (in thousands):

	Three Months Ended				Nine Months Ended
	November 2, 2013		October 27, 2012		November 2, 2013		October 27, 2012
DTV	$	13,078	$	30,140	$	43,358	$	61,766
Home Networking		19,409		19,735		59,147		62,991
Set-top Box		9,595		9,059		30,390		34,534
Home Control		5,952		4,803		16,390		11,209
License and Other		6,360		168		11,411		1,914
Net revenue	$	54,394	$	63,905	$	160,696	$	172,414

The following table sets forth net revenue for each geographic region based on the ship-to location of customers (in thousands):

	Three Months Ended				Nine Months Ended
	November 2, 2013		October 27, 2012		November 2, 2013		October 27, 2012
Asia	$	38,566	$	38,514	$	117,032	$	119,432
North America		10,076		4,799		20,736		11,990
Europe		5,752		17,589		19,720		34,101
Other regions		-		3,003		3,208		6,891
Net revenue	$	54,394	$	63,905	$	160,696	$	172,414

The following table sets forth net revenue to each significant country based on the ship-to location of customers (in thousands):

	Three Months Ended				Nine Months Ended
	November 2, 2013		October 27, 2012		November 2, 2013		October 27, 2012
China, including Hong Kong	$	22,641	$	26,108	$	78,816	$	88,651
Thailand		9,326		1,697		18,065		3,519
Hungary		2,680		14,601		12,349		26,759
United States		9,903		4,211		19,886		10,100
Rest of the world		9,844		17,288		31,580		43,385
Net revenue	$	54,394	$	63,905	$	160,696	$	172,414

The following table sets forth the major customers that accounted for 10% or more of our net revenue:

	Three Months Ended						Nine Months Ended
	November 2, 2013			October 27, 2012			November 2, 2013		October 27, 2012
TP Vision		*			23	%		*		16	%
Flextronics		*			10	%		*		11	%
Cal-Comp Electronics		12	%		*			*		*

* Accounted for less than 10% of our period net revenue.